Exception if lack of authority is disclosed to client
A financial services licensee is not responsible under section 917B or 917C for the conduct of their representative if: (a) the conduct is not within authority in relation to the licensee (or in relation to any of the licensees, if there were more than one); and (b) the representative disclosed that fact to the client before the client relied on the conduct; and (c) the clarity and the prominence of the disclosure was such as a person would reasonably require for the purpose of deciding whether to acquire the relevant financial service. Note: A person must not hold out that conduct, or proposed conduct, of the person is within authority in relation to a particular financial services licensee, unless that is the case. See section 911C.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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